Is Decriminalisation of Section 138 of Negotiable Instrument Act, 1881 a Step Ahead?

With the increase in trade and commerce, cheques and other negotiable instruments emerged as effective modes of discharging one’s debt liabilities under contracts or otherwise, especially by MSMEs and small traders. Thus, with the intention to maintain the creditability in cheques and to provide protection against the unscrupulous use of cheques, section 138 of the Negotiable Instrument Act, 1881 (for brevity NI Act) was enacted. This article provides a brief overview of Section 138 of the Negotiable Instrument Act, 1881. It also highlights the governments decision of decriminalization of Section 138 of the Negotiable Instrument Act, 1881